BEIJING (Reuters) - Only China's yuan could rank with the dollar and euro as pillars of the global monetary system, given time and five key tests, Hong Kong's former Monetary Authority chief Joseph Yam was quoted as saying.
SHANGHAI: China weakened its currency for the third consecutive day Thursday, but financial markets that had been shaken by the surprise devaluation took heart as authorities pledged not to let the yuan plummet. The central bank trimmed the reference rate for the yuan -- also known as the renminbi (RMB) -- by 1.11 percent to 6.4010 yuan for $1, the China Foreign Exchange Trade System said, from the previous day's 6.3306. The cut was less than previous two days and came after reports the People's Bank of China (PBoC) intervened Wednesday to stem the yuan's fall.
By Noah Feldman The International Monetary Fund's decision to designate the Chinese renminbi, commonly known as the yuan, as a global reserve currency will, over time, encourage the country's leadership to make the currency more tradable. But the political implications of global reserve status may be more significant than the economic ones.
This post The Currency Wars’ “Pearl Harbor” appeared first on Daily Reckoning.
The most dramatic battle yet in the currency wars took place last Thursday. It was the financial equivalent of a Pearl Harbor sneak attack…
“I find it a bit surprising that he did not contact me” IMF Director Christine Lagarde told CNBC’s Steve Liesman that day, “but, you know, we’ll check on that.”
SHANGHAI: China's yuan closed firmer against the dollar on Thursday as traders cited large transactions by state-owned banks possibly on behalf of the central bank, which supported the Chinese currency in both spot and derivative markets. "Major state banks did some large deals, supporting the yuan's value," said a dealer at a European bank in Shanghai.
BEIJING: China's devaluation of its yuan currency should not be made a scapegoat for the recent global stock market rout, a senior Chinese central bank official said on Thursday. Instead, Yao Yudong, head of the bank's Research Institute of Finance and Banking, said concerns over a possible US interest rate rise this year may have fuelled capital flight out of emerging markets. He said the US Federal Reserve should delay any rate hike to give fragile emerging market economies time to prepare.
BEIJING: The Chinese yuan is expected to weaken by another one percent in the coming year after the central bank stunned global markets this week by devaluing the currency by the most in 21 years, a Reuters poll showed on Wednesday. A moderately weaker yuan is not likely to provide much of a lift to China's struggling export sector, though persistent weakness in the yuan may stoke speculation of other nations devaluing their currencies too to bolster economic growth.
Hong Kong (AFP) - The stock exchanges of Hong Kong and Shanghai on Monday launch a much-anticipated trading link that will see billions of dollars in daily cross-border transactions and partially open up China's closeted equities markets to the world.
LUXEMBOURG (Reuters) - China's yuan currency is gaining importance in international trade and investment and might ultimately challenge the U.S. dollar, European Central Bank Executive Board member Yves Mersch said on Wednesday.